10-year Treasury yield hits highest since 2002, then eases as buyers return
The U.S. 10-year Treasury yield rose to about 5.34% on Thursday — its highest since 2002 — before retreating toward 5.26% as bargain hunters stepped in, Reuters reported. Global bonds sold off on energy-cost inflation and strong growth, then stabilized late in the U.S. morning.
AI-assisted · US Brief desk · Sources listed below
What happened
The U.S. 10-year yield earlier rose to about 5.34%, its highest since 2002, after the sharpest quarterly yield rise this century in the September quarter. Bargain hunters helped the market stabilize; the benchmark retreated to around 5.26% late in the U.S. morning, Reuters said. Analysts still see room for more selling.
Why it matters
Higher yields raise borrowing costs for companies, mortgages, and governments. Portfolio manager Danny Zaid told Reuters that rising yields tighten financial conditions and could raise slowdown risk even while the broader economy still looks strong.
What’s next
How yields digest the weaker jobs data, and next week’s Fed speakers.
More context
U.S. Treasury yields spiked to multi-decade highs on Thursday before pulling back as buyers returned, extending a global bond selloff driven by energy costs and strong growth expectations, Reuters reported.
Global pressure: French 10-year yields traded near 5%, the highest since 2002, as Paris presented a tough budget. Britain’s 30-year yield rose above 6%, its highest since 1998. Japan logged a fifth consecutive quarter of double-digit sovereign yield gains, Reuters said.
Why bonds are selling: Higher energy costs are fanning inflation concerns. AI and data-center investment is boosting growth expectations and competition for capital. After a Fed hike last month, traders were pricing at least three more increases before mid-2027, even as cooler U.S. inflation data midweek pushed back near-term hike odds, Reuters reported.
Uncertainty: Intraday yields move fast. Friday’s September jobs report showed payrolls up 29,000, below the roughly 84,000 economists expected, with unemployment rising to 4.2%, the Labor Department said; the bond-market reaction was still developing at publication. Further bond selling remains possible, analysts said.
4 listed sources
- Reuters, Oct 1, 2026: Bonds teeter after US Treasuries' worst quarter since 1994 / Global bond rout updates
- U.S. Bureau of Labor Statistics, Oct 2, 2026: The Employment Situation — September 2026
- CNBC (Jeff Cox), Oct 2, 2026: U.S. nonfarm payrolls increase by 29,000 in September, less than expected; unemployment rises to 4.2%
- Sourcing note: Reuters wire for intraday yields and global comparison. Figures are market prints that move; Sunday/Monday closes may differ.
References listed by US Brief; a source count is not a verification score.
Editorial sourcing notes
Primary: Reuters (Tom Westbrook, Ankur Bannerjee, et al.), Oct 1, 2026 — 10-year to 5.34% then ~5.26%; France near 5%; UK 30-year above 6%; Japan fifth straight double-digit quarterly yield rise; Fed hike pricing. Yields approximate intraday prints. September quarter worst U.S. Treasury yield rise context already covered in fin-treasuries-worst-quarter. Jobs report (Oct 2 8:30 ET) not included — still pending at draft time. Refresh 5:40 AM PT Oct 2: added September jobs report (BLS: +29,000 payrolls, 4.2% unemployment; CNBC consensus ~84,000). Post-release yield move not yet reported at publication, so none stated. Consistent with live fin-treasuries-worst-quarter (~5.3% touch, highest since 2000s).
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